hi ivan, are you saying this is because you dont know, or...

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jackarooz

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20/08/16

12:42

Post #: 18564836
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Originally posted by Ivanovich ↑

Tempo's was effectively is receiving a deferred payment of $33,000 for the Cable Logic acquisition. They paid $250K + $317K with rights to receive $600,000 , presumably the accounts receivable. As detailed in the presentation personal and accounting functions will be relocated to the Tempo offices. The average revenue for the last 3 years has been $15M PA. To assess the value of the deal one can refer to the recent acquisition of Datatel by Southern Cross Electrical, SXE. If we assume Cable Logic will generate $15M PA, and has the same EBITDA margins as Datatel of 7.58% TPP would have paid Initial Consideration of $4.13M, Deferred Consideration of $2.3M and Stretch Consideration of $5M if the same out performance targets were met. The calculations are on the basis that Cablelogic has 66% of Datatel's $22M revenue. The total that would have been paid by TPP would have been $11.43M . Caution this is a rough speculative estimate as we don't know what cash, accounts R and P, tangible assets, Datatel had on it's balance sheet. A second approach to the valuation is to take the projected $15M revenue and assume an EBITDA margin increasing to 9% for Cablelogic ( no Perth rent now, $150K - $175K a guess ?) and savings in integration of back office functions. At $15M Revenue that's $1.35M EBITDA at $20M revenue $1.8M EBITDA. At 10% DA and 30% TAX the range is $850K to $1.134 NPAT. On a PE of 8 that's $6.8M > $9.07M valuation for a company they were paid $33,000 to take over.

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hi ivan,

Caution this is a rough speculative estimate as we don't know what cash, accounts R and P, tangible assets, Datatel had on it's balance sheet.

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are you saying this is because you dont know, or because the company actually does not know?

one would certainly think that Temp would know prior to making any decisions so just asking in case...lol

TPP Price at posting: 29.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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hi ivan, are you saying this is because you dont know, or...

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